You expect a share of stock to pay dividends of $1.50, $2.35, and $2.80 in each

ID: 2623077 • Letter: Y

Question

You expect a share of stock to pay dividends of $1.50, $2.35, and $2.80 in each of the next 3 years. You believe the stock will sell for $28 at the end of the third year.

What is the stock price if the discount rate for the stock is 10%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

What is the dividend yield? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

What is the stock price if the discount rate for the stock is 10%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Explanation / Answer

1.50/1.10 +2.35/1.10^2 +2.80/1.10^3 +28/1.10^3= 26.45

1.50/26,45= 5.67%

Navigate

You expect a share of stock to pay dividends of $1.50, $1.65, and $1.90 in each

You expect a share of stock to pay dividends of $2.20, $2.55, and $2.70 in each

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.

You expect a share of stock to pay dividends of $1.50, $2.35, and $2.80 in each

Question

Explanation / Answer

Related Questions

Navigate